Why Walt Disney shares jumped on Monday

What happened

Actions of Walt disney (NYSE: DIS) Traded 4.9% higher at 12:50 p.m. EST. President Biden’s bigger stimulus checks are coming ever closer to final approval, and California lawmakers want to speed up the reopening of Disneyland and other theme parks in the state. Together, these forces are lifting the House of the Mouse today.

So what

Last week, two California state officials introduced a bipartisan bill that would move theme parks to the “moderate” level of restrictions under Governor Gavin Newsom’s Blueprint for a Safer Economy. Disneyland has been closed due to COVID-19 security restrictions since March 2020 and the doors are still locked. If this bill is passed into state law, Disney and other theme park operators would benefit from the proposed $ 1.9 trillion Biden stimulus.

Now what

During the November fourth quarter earnings call, Disney CEO Bob Chapek was “extremely disappointed that the state of California continues to keep Disneyland closed despite our proven track record” in coronavirus security. The company is eager to reopen all of its entertainment assets, and Disneyland stands out as a particularly difficult roadblock. Any progress towards a full or partial reopening should be seen as good news for Disney, so it’s no surprise that the stock is climbing today.